WFDSA 2023 annual report

The global retail sales statistics

The direct selling industry in the year 2023 underwent a 2.3% year-over-year decline in global sales amounting to $167.6 billion. This is followed by the 2023 direct selling statistics of $172.8 billion which recorded a 1.5% drop that year. However, the fact that these falls are far better than what the industry witnessed during the pre-pandemic period exhibits how the sector is steering past hurdles to sustained growth and success.

Direct sales representatives

Despite a fall in the number of independent sales representatives by 4.9% totaling to 102.9 million, the report states that over 60% of the people want to venture into the sector for the entrepreneurial opportunities and substantial growth potential of the channel. The report also gives a deeper insight into the inferences from the Direct Selling Association of 13 different countries, and how effectively the sector is attracting younger generations, and driving growth through diverse strategies.

The women power in direct sales

Although not a surprise, seven out of ten direct sales representatives are women, and the industry continues to be driven by them. However, there has also been a steady increase in the number of men joining the channel in the past years. The Global Entrepreneurship Monitor (GEM) also states that one in six women are inspired to begin their own business soon. Undoubtedly contributing to the fact that many of the successful direct selling brands are led by women, who not only creates records in sales and growth, but also leads the channel with their innovation and effective leadership.

Sales trends by category

Coming to the direct selling business categories, following the trend since 2019, beauty and wellness, cosmetics and personal care, and household goods and durables maintained their top three positions accounting for 72.9% global sales. Out of which, the share of household goods and durables witnessed a sharp rise from 11.8% in 2019 to 17% in 2023.

The report also includes a list of 24 countries as the world’s billion-dollar direct selling markets of which 8 are in the Asia/Pacific region. The region’s sales excluding China has increased steadily from $49,428 million to $52,530 million in 2023, showcasing the growth potential of the region despite a global fall.

Global market penetration

The market penetration for direct selling in a country is gauged by dividing the region’s direct sales by its GDP. The WFDSA report has the penetration statistics of 63 countries and has been categorized into higher, mid, and lower penetration. Countries with higher penetration recorded are Malaysia (2.286%), Korea (0.952%), Peru (0.796%), Bolivia (0.760%) and Ecuador (0.752%).

The highest percentage of countries with higher percentages is the Americas with 73% penetration followed by Asia Pacific at 53%, and Europe at 15%. Yet another interesting fact is that compared to advanced economies, developing economies have a higher percentage of penetration. a clear example of how smaller, yet emerging markets are adopting new opportunities at a faster pace driven by diverse customer interests, entrepreneurial spirit, and undying quest to grow and succeed.

This also underscores the region-specific growth potential that is larger than developed countries and higher economies.

Direct selling in the years ahead

The WFDSA report also emphasizes how personalization has become a key mandate to drive success in the direct selling industry and brands tailoring products and services leveraging data to stay put with changing customer preferences.

WFDSA in its report said, “The global direct selling channel—direct selling companies and their independent representatives—responded to the challenges as opportunities and delivered goods and services to people around the world. These direct sales of over half-a-trillion US dollars from 2020 to 2023 had positive impacts on local communities across the globe, providing people with goods and services, and household income through a flexible entrepreneurial business opportunity.”